The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-05-19
REPRESENTATIVE WILKINS, OF
oHI0, INTERVIEWED
BY the Appeal Correspondent rs to
whether the fiftieth Congress
will Advocate the Change
RELATING TO SECURITY TO THE
GOVERNMENT
For National Banks-Maj. Rathbone,
Of California, to be u. 5. Consul
General ut Paris.
ESPECIAL TO THH ArPEAL.l

Wilkins. OF Ohio, Is q member oil the
House Committee on Banking and
Currency under the organization OF
the lsst House, and being national
banker and having taken a leading
part in bank legislation lie considered
one of the best authorities on the sub
iect in Congress. / asked Mr.. Wilkins
today IL he thought the Fiitieth Oon-
gress will advocate the proposition to
so change the laws relating to security
TO the government for National banks
a. to admit Of the deposit Of gold or
silver instead OF government bonds.
mo, do not believe Congress will
ever consent to let the banks deposit
cash In the Treasury instead OF bonds,
because the only real source OF profit
there is in a national bank over q pTi-
vate bank lies in the issue OF curren-
cy," laid Mr.. wilkins. The bonds de-
posted in the Treasury, and the
money 100 per cent? issued on the
bonds deposited is an inducement for
banks to become national; and OF
course 1t lie the aim OF the government
to have as many Of the banks national
as possible"
but are not the national hanks re-
dncing their circulating medium to as
low basis as possible ?"
Eyes, they are coming down TO 25
per cent, the minimum, as nearly
and as rapidly as they can. But you
must understand that IL is not the
amount Of bonds deposited with the
government that secure the dapositor
and patron OF banks. 1t is the gu
pervision by the government that
keeps the banks straight and makes
them secure. l think, however, that
private banks are more secure to the
dep sitor than the national banks.
The stockholders In national banks
are only responsible for twice the
amount Of their stock, while those in
private banks are held responsible for
all they are worth. You may have
in the event 1t fails the creditors can
drain your resources out, even to the
extent OF 81 100000, il necessary TO
meet their demands. The stockhold-
ers In private banks, and the officers
also, make known their worth; while
those in national banks do not feel
obliged to do 30, as the government is
supposed 10 be responsible for the
management OF their concern"
"Whal do you think will be done
to furnish new basis for bank circu-
lation ?"
Probably replace tho outstanding
bonds with two per cent bond, to
run say 100 years. and TO afford per-
manent circulating medium. We can
float several hundred millions Of 2per
cents at par, II theyfuu 100 years or
30. The exchange can be made by
paying the difference In the interest,
even now, and new banks and those
wanting an increase would take In the
new bonds,
ado you think there Is any proba-
bility OF tbs Secretary OF the Treasury
going into the IN lrket and buying the
outstanding bonds to employ the sur
plus2"
81 hardly thinks so," replied Mr.. |
Wilkins; although he may do 40, as
the law gives him authority. No, / |
do not think the fact that he was going
to buy in the bonds would bull the !
market, as he could stop 1t II the mar
ket went up. There is nothing com.
pulsory about his buying. Then the
bonds are becoming less valuable as
the time Of maturity approaches. IL is
my opinion that q new cheap bond, as
/ have indicated, will be furnished,
and as the interest will be low 1t will
be only desirable for the banks, and
the present system OF security and
banking will continue.
THE INTERSTATE COMMERCE COMMISSION
devoted some time today to hearing
arguments upon application OF the
Queen and Crescent railway syftem
Iot nermauant SUSPENSION Of section
4 Of the interstate Commerce law.
Mr.. John q. Gault, manager OF the
syatem, frat addressed the Commits
sion. He described the line Of the
Queen and Crescent roads, pointing
out its general proximity to the Missis-
Bippi river and other routes, The
Hyet am, he said, had considerable bust
ness which il would like to retain, and
to this end he hoped to obtain per.
manent relief frOmwater competition.
BARTLKTT's APPLICANT N RRFusRD.
ActiaE Commissioner Stocksager
has refused the application OF Letter
A. Bartlett to locate with Gerard scrip
certain lands on the lake front in the
city OF Chicago, for the reason that
''there are no public lands OF the Uni
ted States Ia the city OF Chicago that
ara subject to entry under general
laws, and consequently none that can
be appropriated by scrip locations or
a )sting rights Of entry Of any charac-
teri" and for the further reason "that
the status OF the lands in question
has been settled by repeated decisions
OF the Department Of the lnteriot."
The lands embraced in the rejected
applications are occupied by the tracks
and buildings Of the Illinois Central
Railroad Company, and are valued
at several millions OF dollars. The
Acting Commissioner does not discuss
the question Of actual title, but says
that If any OF said lands belonged to
the United States, q special act Of Con.
gress would be required f1r their dis
posal.
MAJ. RATHBoNK APPOINTED CONSUL GIN.
RRAL AT Pads.
The President today appointed Maj
]. L. Rathbone, OF California, to be
Consul General OF the United States
at Paris. Maj, Rsthbone was born in
Albany, N. Y, Of which city his father
was mayor. He was educated at West
Point and served for several years on
the staff Of Major General SChofeld.
After resigning from the army fifteen
years ago he located in Caliiornis,
where he became one Of the foremost
citizens OF the Golden State. The ma
jor is widely known here, and his D.
pointment is very gratifying to his
numerous friends.
NADITAI MITES